Weaknesses
Adding high tech and performance-oriented features to their cars has meant that Honda has occasionally had to recall their products, leading to a weaker brand image. In addition, the spending on R&D has led to declining operating margins while the market share is threatened by huge lineups from Toyota and Nissan. OpportunitiesThere is an upsurge of interest in environmentally friendly vehicles, and Honda's R&D focus means that it is well poised to capitalize on its expertise in this industry. In addition, Honda is a major player in the emerging markets (BRIC countries). ThreatsRising oil and raw material prices in the world market can lead to decreased demand for automotive vehicles. In addition, increased costs have led to decreased consumer spending and the competitive rivalry is very high in this industry.